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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
the Securities Exchange Act OF 1934
Date of Report (Date of earliest event reported)
May 23, 1997
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CRIIMI MAE INC.
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(Exact name of registrant as specified in charter)
Maryland
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(State or other jurisdiction of incorporation)
1-10360 52-1622022
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(Commission (IRS Employer
File Number) Identification No.)
11200 Rockville Pike,
Rockville, Maryland 20852
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(Address of (Zip Code)
Executive Offices)
(Registrant's telephone number, including area code)
301/816-2300
Not Applicable
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(Former Name or Former Address, if Changed since Last Report)
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Item 5. Other Events
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On May 16, 1997, CRIIMI MAE Inc. (the Company) purchased subordinated
commercial mortgage backed securities (CMBS) pursuant to a private placement of
First Union-Lehman Brothers Commercial Mortgage Trust Commercial Pass-Through
Certificates, Series 1997-C1. The subordinated CMBS have a face value of
approximately $89 million and were purchased for approximately $50.1 million.
The purchase required an equity investment of $22.4 million with the remaining
funding of $27.7 million provided through repurchase agreements. Based on the
timing and amount of future credit losses estimated by management, the estimated
weighted average unleveraged yield over the expected average life of the CMBS is
11.3%. The purchase represented 100% of the BB-, B, B- rated and unrated
tranches, as well as approximately 15% of the BB rated tranche from the
securitization. Subsequent purchases of subordinated CMBS may include varying
portions of the BB rated and other subordinated tranches.
With this purchase, as of the date hereof, the Company has assets totaling
approximately $1.4 billion and performs mortgage servicing functions for a
portfolio of approximately $7.6 billion. Assets include $614 million of
subordinated CMBS (based on purchase price) and $622 million of government-
insured mortgages secured by multifamily housing complexes located throughout
the U.S.
Additionally, the Company was recently given an "Acceptable" Master
Servicer rating by Fitch Investor Services. A Master Servicer is rated by Fitch
Investor Services as either "Acceptable" or "Unacceptable". The addition of
Master Servicing to the Company's portfolio administration program provides an
additional revenue stream and gives the Company greater supervision over the
mortgage loans that back a securitization. <PAGE>
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S I G N A T U R E
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed by the undersigned thereunto
duly authorized.
CRIIMI MAE Inc.
By: /s/ Cynthia O. Azzara
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Cynthia O. Azzara
Its: Senior Vice President and
Chief Financial Officer<PAGE>
